Oil Sands Water Management Initiative Notes

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Patrick Law\'s personal notes from the Oil Sand Water Management Initiative (Canadian Business Conference) 2011

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  • OTSG TDS Limit: < 12,000 mg/L  Classification of Water Salinity (gm/L)  Fresh Water: < 0.5  Brackish Water: 0.5 – 30  Saline Water: 30 – 50  Brine: > 50
  • Oil Sands Water Management Initiative Notes

    1. 1. Oil Sands Water Management Initiative: Managing Water Resources In Oil Sands In Situ Production Jan. 26-27, 2011 (CTCC) www.oil-sands-water-management.com/8/information/173/oswcalgaryjan2011presentations/
    2. 2. Extra notes <ul><li>See ‘Oilsands Review’ Magazine for Project status numbers. </li></ul>
    3. 3. Brian Doucette, Director of Environmental Excellence Suncor <ul><li>TRO (tailings reduction operations) technology from surface mining facilities will be used for in situ water treatment see the following article on TRO: http:// www.oilandgasinquirer.com/article.asp?article =magazine/110117/MAG2011_JH0000.html </li></ul><ul><li>Trucks with RO technology (note that he says this was a success, but I have heard differently) </li></ul><ul><li>90 to 95% up to recycle rates </li></ul><ul><li>Arrangement Cloverbarr treatment facility edmonton refinery + surface mining facilities to use in SAGD (integration of assets) </li></ul><ul><li>Reduce net water use from 2007 base-point by % by 2012. </li></ul><ul><li>WBCSD Water Projet leadership team member and industry collaboration through the Oil Sands leadership initiative. </li></ul><ul><li>Firebag (Majority of growth spending in 2011 for firebag, Phase 1&2 + Cogen operating), MacKay River (10000bbl, 2002 operating) </li></ul>
    4. 4. Brian Doucette, Director of Environmental Excellence Suncor <ul><li>Industry record: </li></ul><ul><ul><li>0.5 barrels of water for every barrel of oil produced (in situ) </li></ul></ul><ul><ul><li>2 to 4 per barrels of water per barrel of oil produced (mining) </li></ul></ul><ul><ul><li>Water recycling in industry: 80 to 95% </li></ul></ul><ul><ul><li>2009 oil sands water use was 179 million m3 (1/3 of 2008 City of Toronto water use) </li></ul></ul><ul><ul><li>Oil sands water use: 7% of Alberta water allocation </li></ul></ul><ul><ul><li>Athabasca River withdrawal: 0.5% of average and 3.4% of lowest weekly water flow </li></ul></ul><ul><li>Suncor </li></ul><ul><ul><li>90% recycling rate at Firebag In Situ Facility </li></ul></ul><ul><ul><li>95% recycling rate at MacKay River facility </li></ul></ul><ul><ul><li>Total Suncor water 2009: gross water withdrawal of 40.6 million m3 (decline of more than 1/3 since 2002) </li></ul></ul>
    5. 5. Peter Sametz, President and COO of Connacher Oil and Gas <ul><li>SAGD (Great Divide) Pod1 (2007) and Pod2(Algar, 2010) each nameplate at 10,000bbl/day capacity (evaporator technology each time) operating. </li></ul><ul><li>500m down into the ground </li></ul><ul><li>Integrated with the Great Falls Montana Refinery (converted to take bitumen) </li></ul><ul><li>Junior oil and gas, wants to convert into cash flow. </li></ul><ul><li>27000 bbl/day steam gen. capacity. 6300-6700kPag. </li></ul><ul><li>IGF, ORFs, 2 Falling film evapourator towers with 2 nd stage, notional 30,000 bbl/day steam capacity. </li></ul><ul><li>Next expansion will add to this facility </li></ul><ul><li>On time, under budget 2010 finalized start-up declared. </li></ul>
    6. 6. Peter Sametz, President and COO of Connacher Oil and Gas <ul><li>Pod1: </li></ul><ul><ul><li>Design Capacity ~ 1,600 m3 / day bitumen </li></ul></ul><ul><ul><li>Steam Generation: Drum boilers </li></ul></ul><ul><ul><ul><li>Operating pressure 6300 kpa </li></ul></ul></ul><ul><ul><ul><li>Deliver 4,300 m3 /day steam @ 98% + Quality </li></ul></ul></ul><ul><ul><li>Treating: Diluent addition </li></ul></ul><ul><ul><li>Water Recycle: IGF, WS Filter, Two vertical tube falling film evaporator towers </li></ul></ul><ul><ul><li>Waste Water: Waste water shipped to Algar 2nd Stage </li></ul></ul><ul><ul><li>Evaporators </li></ul></ul><ul><ul><ul><li>Source Water: 3 operating source water wells in the </li></ul></ul></ul><ul><ul><ul><li>Lower Grand Rapids formation, 1 other source water well approved </li></ul></ul></ul>
    7. 7. Peter Sametz, President and COO of Connacher Oil and Gas <ul><li>Pod2 (Algar): </li></ul><ul><ul><li>Design Capacity ~ 1,600 m3 / day bitumen </li></ul></ul><ul><ul><li>Steam Generation: Drum boilers </li></ul></ul><ul><ul><li>Operating pressure 6700 kpa </li></ul></ul><ul><ul><li>Deliver 4,800 m3 /day steam @ 98% + Quality </li></ul></ul><ul><ul><li>Treating: Diluent addition </li></ul></ul><ul><ul><li>Water Recycle: IGF, WS Filter, Two vertical tube falling film evaporator towers </li></ul></ul><ul><ul><li>Waste Water: Waste water shipped from facility to approved disposal sites </li></ul></ul><ul><ul><li>Source Water: 3 operating source water wells in the </li></ul></ul><ul><ul><li>Lower Grand Rapids formation, 1 other source water well approved </li></ul></ul>
    8. 8. Peter Sametz, President and COO of Connacher Oil and Gas <ul><li>Brownfield expansion, no water disposal facilites! </li></ul><ul><li>Modifications will be discussed in this presentation later </li></ul><ul><li>Currently up to 16,000bbl/day expansion to 44,000 (add 24,000bbl/day) </li></ul><ul><li>Proof of concept for evaporation 1990, 2000s demonstrated commercialization of the SAGD process and projects </li></ul><ul><li>Evaporation because of cost effective (capital and operating) longest running user of evaporators, took approach that small projects are best to reduce cost. </li></ul><ul><li>Conventional Drum boilers require ASME water ( http://catalog.asme.org/books/CDROM/Consensus_Documents_Feedwater.cfm </li></ul><ul><li>94-95% recycle due to evaporation </li></ul><ul><li>Experience had some problems initially with deoiling hitting the evaporators, have learned how to do this without too many upsets. </li></ul><ul><li>Goal is 90% throughput reliability, evaporators are 100% reliable at this time. </li></ul>
    9. 9. Chris Bloomer, COO & VP Oil Sands Heavy Oil Petrobank Energy & Resources <ul><li>Petrobakken, Whitesands, Archon interests </li></ul><ul><li>Whitesands is where the THAI process is ( http://www.theoildrum.com/node/6183 ) operating since 2006. No need for water, uses water in the reservoir. </li></ul><ul><li>Drilled wells close to the bottom of the reservoir. Produces a condensed water, oil and gases (hydrocarbons and CO2). </li></ul><ul><li>Recovery of 70-80% of the reservoir </li></ul><ul><li>Use produced water to generate power as boiler feed </li></ul><ul><li>2-3 years expect over 100,000bbl/day expansions </li></ul>
    10. 10. Chris Bloomer, COO & VP Oil Sands Heavy Oil Petrobank Energy & Resources <ul><li>Produce 7 to 12degrees API in situ upgrading, easier pH neutral water to separate, less deoiling needed </li></ul><ul><li>Net producer of water from the formation combustion process </li></ul><ul><li>Daniel’s is analyzing their data, 17% more than SAGD for recovery actual. </li></ul><ul><li>Similar quality of water to conventional production at Conklin. </li></ul><ul><li>Preheating to the reservoir with steam (250MMBtu) to prepare the reservoir. </li></ul><ul><li>Dawson THAI Project </li></ul><ul><li>Archon Technologies – looking into producing water as a commodity </li></ul><ul><li>Goal to eliminate water usage. </li></ul><ul><li>Question: TDS of the water is >4000ppm, answer: no regulatory because it is in the pilot phase still. </li></ul><ul><li>Lift mechanism with the gas produced, 1015Btu combustion quality gas out of the horizontal well. </li></ul><ul><li><40% gas injection is the target in the future </li></ul><ul><li>Water/oil ratio 50:50 production. </li></ul>
    11. 11. Calvin Watson, General Manager Thermal Heavy Oil, Devon Energy <ul><li>http:// www.devonenergy.com / </li></ul><ul><li>70% liquids, 30% gas </li></ul><ul><li>60-70000bbl/day nameplate, 31000bbl/day actual production. </li></ul><ul><li>No fresh water in the process (PL says: ‘ like this is new’ ) </li></ul><ul><li>Jackfish, Deoiling, WLS, Filters, WAC/WAC. No tailing ponds… </li></ul><ul><li>Deoiling: flocculant add upstream of skim tank (out of skim tank 3000ppm), IGF (200pm off), ORFs, 2ppm out. < 2ppm silica from HLS </li></ul><ul><li>Addition of make-up water to HLS., Lime softener filters, WAC/WAC. </li></ul><ul><li>Hot Lime Softening: </li></ul><ul><ul><li>CAPEX drivers (pros. 10% more for HLS (1million dollars), WLS needs more size to treat same amount of water) </li></ul></ul><ul><ul><li>OPEX drivers (less mechanicals, minimal maintenance (less plugging), HLS needs more heat) </li></ul></ul><ul><ul><li>HLS has better reliabilty 99.7% reliability of current system, HLS picks up oils </li></ul></ul><ul><ul><li>WLS is unstable in their view, management of heat needs to be high </li></ul></ul><ul><li>Next: moving towards higher TDS waters, high recycle rate is focus (need to clean up the blowdown off of the OTSGs. </li></ul><ul><li>13-14000ppm TDS, wells further to the east, more saline water, using Jackfish 2 and 3 to be designed for higher TDS. </li></ul><ul><li>Future techs  electrocoagulation (early stage look), wants to drive up the recycle rates. </li></ul><ul><li>Waste streams lime sludge (centrifuge and landfill) + drypack technology + 8-9 times recycle per barrel, </li></ul><ul><li>From a question: 12-15 cents on bitumen (opex), 6cents water (opex) </li></ul>
    12. 12. Anil Kalaga, Senior Technical Engineer, Connacher Oil and Gas <ul><li>From oilsands review: see Peter Sametz presentation above. </li></ul><ul><li>Reliability on evaporators: Pod1 Single stage, Algar are two stage – water efficiency decision in addition to opex. </li></ul><ul><li>Algar started converting wells to SAGD in July/Aug 2010. </li></ul><ul><li>Deoiling  Evaporation (mechanical compression (4-5% brown/black waste)  Drum boilers </li></ul><ul><li>Addition of caustic and chemicals for pH control in the evaporators </li></ul><ul><li>After start-up, there is no additional steam addition to the evaporator </li></ul><ul><li>Distillate flow rates >5000m3/day </li></ul><ul><li>Reliability issues: scaling/plugging issues on the tube sheet, not easy to clean, outage for a long time. Take this into account for design of the boiler feed rate. </li></ul><ul><li>See pictures of fouling in presentation. </li></ul><ul><li>Sump pH is 12.7 to keep the silica down. Need to keep a calcium silica balance. Feed water to the evaporator is </li></ul>
    13. 13. Anil Kalaga, Senior Technical Engineer, Connacher Oil and Gas <ul><li>Troubleshooting: </li></ul><ul><ul><li>Pay attention to distribution to the tubes in the evaporated – used distributor baskets, caps </li></ul></ul><ul><ul><li>Analysis tools on the evaporators are essential </li></ul></ul><ul><ul><li>Used transport studies: analysis of calcium/mag. Into and out of each stage. </li></ul></ul><ul><ul><li>Adding caustic an issue with calcium/mag. Paid too much attention to silica and ignored hardness. Hardness is a big factor. </li></ul></ul><ul><ul><li>Oil in the Evaporator reduces run length of the evap. Increase attention to deoiling. </li></ul></ul><ul><ul><li>Semi-offline claening for quick turn-around </li></ul></ul><ul><ul><li>Steam availabilty at the plant was 86%, primarily the evaps. With some boiler issues. </li></ul></ul><ul><ul><li>Since the start of 2010, 96% reliability </li></ul></ul><ul><ul><li>Trucking waste costs more than the power requirements of the evaporators. </li></ul></ul><ul><ul><li>Operator training and awareness makes a big difference with </li></ul></ul><ul><ul><li>Diff. between black licorice and PW evaporator (in the pulp and paper industry), learnings need to know the water chemistries. </li></ul></ul><ul><ul><li>15-20000 per day to one truck per day waste disposal </li></ul></ul>
    14. 14. Dr. Ed Van Doorn, Water Treatment Application Specialist, Baker Hughes <ul><li>HLS/WLS processes can have improvements. </li></ul><ul><li>Water Soluble Organics Reduction </li></ul><ul><ul><li>Fulvic and humic acids (organics) act as dispersants, need to use cationic polymers to minimize the neg. charge in softeners, this allows </li></ul></ul><ul><ul><li>Droplet size small negates the effect of coagulant addition. Alternative treatment by removing the water soluble organics upstream of the HLS/WLS (1. acidification of PW below 6pH to get less than 10ppm,mixing with free oil (diluent)), 2. oxidize the PW stream with ozone.) </li></ul></ul><ul><li>Silica Scale Inhibitor Use </li></ul><ul><ul><li>Geothermal industry chemical addition makes it possible to have 250ppm OTSG silica addition, could eliminate WLS/HLSs. </li></ul></ul>
    15. 15. <ul><li>Silica Scale Inhibitor Use </li></ul><ul><ul><li>Geothermal industry chemical addition makes it possible to have 250ppm OTSG silica addition, could eliminate WLS/HLSs. </li></ul></ul>
    16. 16. Dr. Ed Van Doorn, Water Treatment Application Specialist, Baker Hughes <ul><li>Increased Use of Brackish and Saline Water </li></ul><ul><li>OTSG TDS Limit: < 12,000 mg/L </li></ul><ul><li> Classification of Water Salinity (gm/L) </li></ul><ul><li> Fresh Water: < 0.5 </li></ul><ul><li> Brackish Water: 0.5 – 30 </li></ul><ul><li> Saline Water: 30 – 50 </li></ul><ul><li> Brine: > 50 </li></ul>
    17. 17. Mike Kremer, Senior Staff Operations Engineer, Huskey Energy <ul><li>Deoiling: big problem with the sump in the WLS, OTSGs, extreme case is tube rupture and increased pigging. </li></ul><ul><li>Starts in the treaters, FWKO (water goes through 3 times as fast as oil), </li></ul><ul><li>Improvements in the field: </li></ul><ul><ul><li>Addition of demujlsifier chemistry as close to the wellhead as possible. </li></ul></ul><ul><ul><li>Addition of Reverse emulsion breaker </li></ul></ul><ul><li>Treater and FWKO design </li></ul><ul><li>Primary Deoiling: combined skim/IGF, micro bubblers, ceramic membranes, </li></ul><ul><li>Secondary deoiling: ceramic membrane pilot, ceramic dmembrane de-silication, combined deoiling with WLS, Ultra filtration. </li></ul><ul><li>Organics control: Purifics photo-Cat system and ceramic membranes by Filterboxx, </li></ul><ul><li>Focus on hot membrane RO, compact and efficient MVCs </li></ul>
    18. 18. Kevin Slough, CEO, Filterboxx <ul><li>Ceramic membranes: http://www.filterboxx.com/sites/default/files/CeramicBrochure.pdf </li></ul>
    19. 19. Kevin Slough, CEO, Filterboxx
    20. 20. Kevin Slough, CEO, Filterboxx <ul><li>Numberous case studies: </li></ul><ul><ul><li>Bench 8400ppm oil/water mixed in lab, 0.25 to 1.5 bar transmembrane pressure, oil removal 99.6%, operating 25 to 45C </li></ul></ul><ul><ul><li>*Case2: Canmet hydrocyclone from ashphalt refinery result is virtually free of dispersed and emulsified oil up to 10ppm, feed as high as 214000ppm, 90% water recovery, backpulse with permeate recovery,cleaning with steam @60psi. </li></ul></ul><ul><ul><li>Case3: Polymer flood, TDS up to 5000ppm, <10ppm result </li></ul></ul><ul><ul><li>Case4:The produced water contains up to 300ppm of hydrocarbons with a TDS of up to 255000ppm. Three different ceramic membranes were tested; SiC, TiO2 and surface modified TiO2  result is on next page. </li></ul></ul><ul><li>Reduces TSS to zero, TDS can be cleaned off with chemicals, etc. </li></ul><ul><li>Cleaning of membrane backpulse, chemicals for cleaning (acids for mineral scale, caustic for organic fouling) degredation of the membrane (10+ years), </li></ul>
    21. 21. Kevin Slough, CEO, Filterboxx
    22. 22. Subir Bhattacharjee, NSERC Industrial Research Chair in Water Quality Management for the extraction of oil sands, University of Alberta <ul><li>Proposes that the operator learnings be brought back to the equipment and chemical provider in a constant feedback loop. </li></ul>
    23. 23. Pete Schoemann, General Manager, North America, Nalco Company <ul><li>Nalco analyses water treatment problems and tries to solve them with chemistry and equipment. </li></ul><ul><li>Case #1: Economizer Tube Failure Complex Multifactor situation – scale in OTSG deposition leading to tube failure. Takes cross section of deposit and elemental mapping, green is calcium, purple is magnesium, </li></ul><ul><ul><li>High carbon, means oil carry over, (green third one in) </li></ul></ul><ul><li>See the presentation slides for more like this. </li></ul>
    24. 24. Dr. Alfonso Rivera, Chief Hydrogeologist, Geological Survey of Canada <ul><li>Providing Practical Data from hydro geological studies to evaluate the availability of saline water from groundwater and surface water sources  modelling the water usage in Alberta and region. </li></ul><ul><li>Modelling of the flow for ground water is on a 10-100years, but the modeling of the surface water is years or less; therefore, there is a need for the government (through the Geological Survey of Canada, and Environment Canada) to model the aquifers (water systems) of the country and tell people what they can and cannot do with all of the water. </li></ul>
    25. 25. Dr. Alfonso Rivera, Chief Hydrogeologist, Geological Survey of Canada <ul><li>Compatibility of business and environment can go hand in hand… </li></ul><ul><li>During this presentation meet and greet time, I met a man named Claude Asselin from Environment Canada and he explained how the regulations and policies are made and the deficiencies sp? of the government understanding of aquifers in Alberta and Canada (limited modeling has been done). </li></ul>
    26. 26. Margaret Klebek, Senior Hydro Geologist, Alberta Environment <ul><li>AENV is developing a groundwater management framework (GMF) to guide stewardship of groundwater in the mineable and in situ development regions. </li></ul><ul><li>The principal goal of the framework is to manage cumulative effects using a science-based approach, and to manage groundwater resources in a sustainable manner and protect it from over-use </li></ul><ul><li>Guiding principles: </li></ul><ul><ul><li>Cumulative effects analysis results) </li></ul></ul><ul><ul><li>Pollution prevention / avoidance • </li></ul></ul><ul><ul><li>Reversal of trends ( PL I assume that this is related to the precautionary principle) </li></ul></ul><ul><ul><li>(note that this is based on the current level of knowledge and data obtained from existing monitoring infrastructure </li></ul></ul><ul><li>Note that the regional monitoring targets and limits are control based for aquifers and then the targets are developed from investigative approach (i.e. something bad happens, it is investigated). </li></ul><ul><li>Therefore this GMF (groundwater management framework) should be considered an “evergreen” document subject to revision as new information becomes available and as knowledge Enhances </li></ul><ul><li>Implementation of GMFs will consist of the development of GMPs by EPEA approval holders and the establishment of a Groundwater Working Group (GWG) </li></ul><ul><li>CEMS (cumulative effects management system) – ( AENV is moving from a case-by-case basis to a cumulative effects (an overall cap for industrial regions and across the country ). </li></ul>
    27. 27. Duff Harper, Head Environmental Group, Blake, Cassels & Graydon LLP <ul><li>Alberta Land Stewardship Act – binding on the crown, AENV, binding on future approvals this is an important document to be coming out in the next couple of years. </li></ul><ul><li>Land Stewardship Act: Regional Plan (‘super Regulation’), Management Frameworks, Specific Authorizations/Permits/Applications. LARP Lover Athabasca Regional Plan (released 2009) & Regional Advisory Framework. LARP Terms of Referendes – maximum allowable impacts set ( a cap on development in a region ) Application to change limits for the region will need to be made prior to acceptance of application. </li></ul><ul><li>Regional Advisory Council (‘RAC’) Report – NOX/SOX air management plans (including thresholds) need to comply within 6 months of the implementation of the Land Stewardship Act – discourage surface water use for in-situ operations. </li></ul><ul><li>First region to come out is the LARP to be coming out Jan. 2011 as draft report </li></ul><ul><li>Constraint on all previously approved and future water withdrawals within the region </li></ul><ul><li>To do: Ensure operations are not affected, compliance with the Stewardship Act, move </li></ul><ul><li>Understand the impact of limits to local water withdrawls </li></ul><ul><li>Summary: </li></ul><ul><ul><li>Management Frameworks, including groundwater management frameworks are becoming the new ‘norm’ in Alberta. </li></ul></ul><ul><ul><li>Review any/all frameworks very carefully. They can/will impact both existing operations and future operations. </li></ul></ul><ul><ul><li>Management of the oil sands is too important to go away. It is under intense scrutiny, with regional, provincial, national and international ramifications. It is telling that within days of becoming Environment Minister for Canada, Mr. Kent spoke about “ethical oil”. </li></ul></ul>
    28. 28. Margaret Klebek, Senior Hydro Geologist, Alberta Environment <ul><li>Groundwater Monitoring Focus – How the groundwater is monitored. </li></ul><ul><li>Using wells in the North Athabasca Region there is a classification of a number of formations (40 wells selected) </li></ul><ul><ul><li>GOWN – Groundwater Observation Well Network (AENV) – 16 wells </li></ul></ul><ul><ul><li>Alberta Geological Survey Wells (AGS) – 13 wells </li></ul></ul><ul><ul><li>Industry wells </li></ul></ul><ul><li>Contamination levels, water decrease levels  no change since 1970 seen for some areas, but some changes, but within the guidelines developed (ie. Industrial development is within pre-approved limits). </li></ul><ul><li>Next steps is to continue monitoring, evaluation, etc. </li></ul>
    29. 29. Bruce McGee, President & CEO, E-T Energy <ul><li>Developing shallow oil sands resources between surface mining and SAGD. </li></ul><ul><li>Successful production on their leases, next to Suncor, Ivanhoe and Laricina </li></ul><ul><li>Same temperature as SAGD, but not all the water is sturned to steam (less energy than SAGD needed); SOR of pilot is 0.56; 72% recovery. </li></ul><ul><li>Produces a foamy, less dense bitumen, requires a correct water saturation to work. </li></ul><ul><li>Needs electrically conductivity, wetted sands. </li></ul><ul><li>3.5kW per bbl production. Can save money by off peak demands. 2-3cents per kW/hr </li></ul><ul><li>300MW power for 10000bbl/day (estimate during the. </li></ul><ul><li>Answer to question in question period: Slot size and sand screen is the same as SAGD. </li></ul><ul><li>Water treatment is less (steam not created above the ground net energy is 25-30 times the energy input (note that surface mining is 2-3times and SAGD is 4-6 times) </li></ul>
    30. 30. Bruce McGee, President & CEO, E-T Energy .3-.4 gallon/min water injection
    31. 31. Bruce McGee, President & CEO, E-T Energy <ul><li>Plug into the electrical grid. </li></ul><ul><li>Water is filtered, make-up water is added and 1.05bbl water : 1bbl of bitumen (highly saline water); typically cold water. </li></ul><ul><li>CO2 emissions: </li></ul><ul><ul><li>Mining 94.60kg/bbl </li></ul></ul><ul><ul><li>SAGD 56.90kg/bbl </li></ul></ul><ul><ul><li>ET-DSP (all indirect 30.00kg/bbl) </li></ul></ul><ul><li>4000 - 40000ppm TDS water can be used. Bitumen is produced without sand </li></ul><ul><li>60Hz is used, no wave length effects </li></ul><ul><li>Other developments are radio frequency heating (Nexen, etc), Conduction heating (Shell, Athabasca Oil Sands), Induction heating (difficult because the changes in oil sands reservoir) </li></ul>
    32. 32. Bruce McGee, President & CEO, E-T Energy <ul><li>Reality is 50-60% recovery – 10,000bbl/day facility expected approval this year </li></ul><ul><li>Viscosity of the oil produced is 10 times less and API gravity improvement by 10%, hydrogen is produced during the operation. </li></ul><ul><li>$15per bbl/day costs. </li></ul><ul><li>Scale build-up has not been an issue (over 4000 electrode wells drilled to date) </li></ul><ul><li>Carbon based electrodes, carbon steels have not been known to electrically corrode oxygen produced so the </li></ul><ul><li>20-30m of pay in the current tests. </li></ul>
    33. 33. Chris Bloomer, COO & VP Oil Sands Heavy Oil, Petrobank Energy & Resources <ul><li>THAI process in detail </li></ul><ul><li>Upgraded quality oil out </li></ul><ul><li>Cap rock is required for pressure containment </li></ul><ul><li>THAI process recovers 70% (really 63%), SAGD recovers 40%. </li></ul><ul><li>Kerrobert is 15-20m of payzone. </li></ul><ul><li>20-60days steam prior to air injection and oil production. </li></ul><ul><li>Control the direction from toe to heel with initial steam warming. </li></ul><ul><li>Target daily production is 600bbl/day. $9.75 op costs per bbl. </li></ul><ul><li>Native oil 10.4API and produced 14.5API. </li></ul><ul><li>May River 10,000bbl/day application (pilot operating). 100,000bbl/day </li></ul><ul><li>Business plan is licensed sale of the patented THAI process. Archon technology has the rights to this technology. </li></ul><ul><li>50% of the CO2 emissions of SAGD life cycle. </li></ul><ul><li>Not producing water in significant enough quantities at this time. Future is to market the water to other SAGD facilities nearby. </li></ul><ul><li>14% CO2 in the gas coming from the production well. </li></ul>
    34. 34. Chris Bloomer, COO & VP Oil Sands Heavy Oil, Petrobank Energy & Resources
    35. 35. Chris Bloomer, COO & VP Oil Sands Heavy Oil, Petrobank Energy & Resources <ul><li>CAPRI is placing catalyst around the well bore, makes for about 2-3 degrees upgrading (not economic at this time). </li></ul><ul><li>Gas channeling is mitigated by having a liquid pool, see the presentation. </li></ul>
    36. 36. Joe Kuhach, VP Engineering, Ivanhoe Energy Inc. <ul><li>Tamarack Project SAGD with HTL upgrading (20,000bbl/day), expected start-up 2014 (application filed November 2010); 20,000bbl/day expansion planned. </li></ul><ul><li>440M bbl reserves payzones up to 40m thick, 20m average. </li></ul><ul><li>HTL eliminates need for diluent, upgrades the oil, removes ½ of sulphur in the process. </li></ul><ul><li>Analogous to widely‐used FCCs (350 operating globally). Claimed superior to delayed coking and hydrocracking. </li></ul>
    37. 37. Joe Kuhach, VP Engineering, Ivanhoe Energy Inc.
    38. 39. Joe Kuhach, VP Engineering, Ivanhoe Energy Inc. Get rid of lights in vacuum prefractionation
    39. 41. Joe Kuhach, VP Engineering, Ivanhoe Energy Inc. <ul><li>Evaporation/packaged boilers selected for SAGD steam generation. </li></ul><ul><li>Integrating HTL with SAGD: blowdown from evaporators and steam generators used in Flue Gas Desulphurization unit. </li></ul><ul><li>Upgrader sour water streams are processed in CPF water treatment facility. </li></ul><ul><li>Ivanhoe is gambling that the gas prices are going to come back and the upgrading differential will return to ‘normal.’ </li></ul>
    40. 42. Dr. Alexander Zehnder, Scientific Director, Alberta Innovates <ul><li>http:// www.waterforlife.alberta.ca / </li></ul><ul><li>Water for life has goals of safe/secure drinking water, healthy aquatic systems, Reliable, quality water supplies for a sustainable economy </li></ul><ul><li>Serves as knowledge broker and runs a website to transfer information to industry. </li></ul><ul><li>Presentation of a number of case studies, including: tailings ponds remediation, asphaltene aggregation, membrane fouling details, molecular sieve membranes for SAGD, reduction of toxicity of tailings with ozone addition, vanadiam content characterization in the oil sands, oxidized arsenic gets reduced and becomes toxic in the oil sands as the water is heated, biodensification of tailings (stimulate the bacteria in the tailings to increase setting). </li></ul><ul><li>Involved with GE Power and Water, see flowsheet in presentation below: </li></ul>
    41. 43. Dr. Alexander Zehnder, Scientific Director, Alberta Innovates
    42. 44. Basil Perdicakis, Principal Engineer, Statoil <ul><li>Evaluating Waste Water Disposal Processes to Determine the most cost-efficient and least environmentally impactful approach </li></ul><ul><li>Statoil has a number of projects on the go: Kai Kos Dehseh-Leismer, Leismer (510bbl/day pilot) with commercial soon. </li></ul><ul><li>Disposal from </li></ul>
    43. 45. Basil Perdicakis, Principal Engineer, Statoil <ul><li>Discussion of options for SAGD disposal water handling. </li></ul><ul><li>Impacts associated with different disposal water recovery schemes. </li></ul><ul><ul><ul><li>Strategies for improving the environmental footprint associated with SAGD water recycling systems.Improving ZLD operation:Organics mitigation in waste waters. </li></ul></ul></ul><ul><ul><ul><li>Improved waste management (solidification/encapsulation). </li></ul></ul></ul><ul><li>Reducing environmental impacts of Make-Up Water Processing. </li></ul><ul><li>Extra notes:Summary of Statoil Management Study shows the relative production of solids, environmental trade-offs of ZLD shows WLS as the base case. </li></ul><ul><li>Questions: the water used in the creation of the salt cavern is disposed of in deep hole wells. </li></ul><ul><li>Some operators are finding that with higher recycle ratios, it is not only the higher TDS that is limiting in the OTSG, but the organics as well. </li></ul><ul><li>Recognised that rotary drying with organics is not the way to go forward. </li></ul><ul><li>PL note: This was a great presentation. See the full presentation for further details. Especially the table of the water disposal schemes comparison. </li></ul>
    44. 46. Steve Tipton, Operations Engineer, Newfield Exploration <ul><li>Transferable Lessons from other unconventional oil and gas sectors for optimizing the management of water resources throughout production </li></ul><ul><li>Presentation about frac water disposal and use for scale gas development. </li></ul><ul><li>1/3 fresh water and 2/3 recycle water. </li></ul><ul><li>Newfield: Newfield Exp. Has about 1BCF/day gas and other </li></ul><ul><li>Newfield usually uses Trucks for water shipment (60 to 160bbl per load, problems with loading/unloading, travel distance); pipe-out is at a short distance typically with known landholders. </li></ul><ul><li>See the following ways to dispose of water from the well head: </li></ul>
    45. 48. Patricia Nelson, Vice Chair, IOSA In Situ Oil Sands Alliance <ul><li>Developing Innovative Strategies for educating the media on the differences between in situ and mining processes and their impacts on the environment </li></ul><ul><li>Population is a key for energy demand increase (9 billion in 2050) </li></ul><ul><li>Energy use per capital per year is expected to be 150GJ for developed nations </li></ul><ul><li>Canada has 51% of non-state owned oil reserves in the world! </li></ul><ul><li>InSitu is expected to be 40% of production and mining is expected to be 40% of unconventional production by 2025. </li></ul><ul><li>Insitu oil sands are ‘drillable oil sands’ to the public. </li></ul><ul><li>Thermal assisted gravity drainage (piloted by Athabasca Oil Sands, THAI by Petrobank) </li></ul><ul><li>To the public we need to say: “we need to get the energy to the people, garner economic benefits and do so in an environmentally responsible way.” </li></ul><ul><li>The rigid clean water strategy in Alberta does not allow for penetration of the clean water aquifers (‘it does not occur”) </li></ul><ul><li>“ For every $1 produced from the oil sands there is a $3 economic benefit to Albertans” – Insitu Oil Sands Alliance, IOSA. </li></ul><ul><li>Alberta has over $61billion dollars in trade with the United States. The entire country relies on development with Canada. This is one of the wonders of the world. </li></ul><ul><li>Kyoto proticol says 20% below 1990 emissions. We have reduced emissions 39% per barrel. </li></ul><ul><li>The IOSA says that the message to the media needs to be: “we are committed to keep the oil sands operations in balance.” – the story is the demand for energy is world wide, we need to support the demand for nation’s sustainable development. </li></ul>
    46. 49. Janet Annesley, VP Communications for the Canadain Association of Petroleum Producers, CAPP <ul><li>Canada’s Oil Sands and the Art of Difficult Conversations </li></ul><ul><li>Program designed in 3 phases: listening, responding, solutions (we are in the 3 rd phase). </li></ul><ul><li>Performance + Communication = Reputation </li></ul><ul><li>The issue is about oil in the media and not just oil sands. </li></ul><ul><li>Polls have shown that the economic benefits of the oil sand is seen universally as a good thing. People want to “develop the oil sands with an effort to limit the environmental impact” but they feel that this is not being done. We need to change this perception by using media and social media. </li></ul><ul><li>CAPP is trying to develop good feeling across the country about the oil sands and petroleum production. </li></ul>

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